RUSS raising Mount Union sewer rates

MOUNT PLEASANT - The Regional Utility Service Systems may have received its last sewer payment from the 48 residents in Mount Union who had been paying their monthly bills.

The RUSS board met Wednesday afternoon and approved a rate increase from $57.63 a month to $69.88 per month, over the objections of six residents attending the meeting.

"We're not probably going to pay more for sewer," Mount Union resident Lelia Wilkerson told the board. "It's been two years. They haven't done anything to the people in town that aren't paying, and we have, and now you're going to burden us more, because we are the good citizens that are paying our bills."

Bruce Hudson, RUSS executive director, said he understands the complaints of the 48 residents who have been paying - there are 14 residents who are not - but the increase is necessary to prevent a total shut-off of the sewer system in town. He had invited residents who had been paying to voice their concerns at Wednesday's meeting.

The Mount Union system was installed in 2010, and it has been almost that long since some residents stopped paying as a way of protesting the initial installation.

An intergovernmental agreement states the city is responsible for collecting the delinquent funds and ensuring the dollars flow to RUSS, but the city has protested the validity of the agreement.

The issue is being handled in Iowa's court system, but no verdict has been issued since an initial hearing in July. Another hearing is scheduled for Monday, but Hudson said given the delay in giving notice of a rate increase and receiving the additional funds, he needed to ask for the increase at this month's board meeting.

The RUSS board unanimously approved the rate increase, with the abstention of the Henry County representative. Many board members said, though, they would like to rescind the resolution if the court ruling is in RUSS' favor.

Hudson said the delinquent funds mean RUSS is underfunding its loan payments for Mount Union's system by $864.45 a month, and it has made it this long thanks to the U.S. Department of Agriculture Rural Development working with RUSS to move various funds to ensure none are in default.

Hudson said, however, if everyone paid, it's likely the rates could be lower than the current $57.63.

Even with the rate increase, though, Hudson said it may be a matter of time before the sewer system is shut off anyway.

"If we don't raise rates, we have two months. If we raise rates, we have two months," Hudson said. "But we are required - by law and our tax revenue status as an organization - we are required to do what we have to do. So, in other words, in two months, when it fails, and we didn't take the necessary steps to try to gain that money to meet our obligations, have we failed within our obligations of that tax revenue agreement?"

Dan Johnson, Mount Union's former mayor who signed the intergovernmental agreement with RUSS, encouraged the board to default on the city's sewer system, to try to bring the issue to a head. The other RUSS board members said, however, such an action could be a slippery slope for other communities trying to get out of their agreements to install sewer systems.

It was further stated if the city defaults on the loans RUSS has been paying, then it falls on the 10 counties in the organization to pay the defaulted loan amount. Lee Dimmitt of Jefferson County said it essentially guarantees each county would file a lawsuit against Mount Union for the funds.

Johnson, however, did not seem too worried, suggesting it's looking more likely the city will soon become unincorporated.

Argyle delays

During the meeting, the RUSS board also received a short update on the Argyle project. A sewer system was installed in the town in 2009, but it has proven to be inadequate, so RUSS is planning upgrades.

Kent Rice, of Fairfield-based French-Reneker Associates, told the board the upgrades cannot get underway until RUSS identifies the 25 percent match to access the USDA Rural Development funds to finance the rest of the project.

"The real bottom line is, I don't see any way this project is going to get constructed this calendar year," he said.

Rice said the delay would not increase project cost, unless construction prices increase next year.

Hudson said the cost to maintain the current system would not add to costs, either.

He said negotiations continue with the initial project engineer regarding funds for the remainder of the upgrade.

Never miss a story

Choose the plan that's right for you.
Digital access or digital and print delivery.

Extras

Original content available for non-commercial use under a Creative Commons license, except where noted.
The Hawk Eye Newspaper ~ 800 South Main Street, PO Box 10, Burlington, IA 52601-0010 ~ Privacy Policy ~ Terms Of Service